WTC short term idea

WTC has been testing the 0.003 level a few times in the last period after making higher lows. This ascending triangle is a bullish signal and if WTC is able to break the 0.003 resistance, this could be the start of a very nice move upwards. With a breakout there are always two options;
1) Buy the breakout.
2) Wait for consolidation and then enter the trade.

With option 1 you are certain that you entered the trade, but there is always the risk for a false breakout.
My preference goes to option 2, because it is less risky. Usually after a breakout we see an initial move upwards, followed by a retest of the previous resistance area , that now turned support. If this support holds, that is a very bullish signal and that is where I will enter the trade. The downside of this strategy is that sometimes you miss big moves upward that do not come back to the previous resistance area , but the great benefit is that the risk of a false break out after retesting the previous resistance is very low.

Let's see what Waltonchain does!

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BTW please don't mind my drawing, it only indicates the general idea of a breakout/retest.

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Breakouts as such can often be very quick, hence I trade them on low candle charts. At the 5m chart, we can see that WTC already retraced back to the 0.003 level. I added to my position the first time it retraced and placed a stoploss not far below the lowest trendline (is a 2% loss). I placed it here since I see that the volume is not where it should be during a real breakout. Usually a breakout is confirmed by a nice rise in volume, but I'm not seeing it here yet. Thus we could still fall below the 0.003 and test the lower trendline once more before really breaking out. That is why I stil kept some of my allocated funds for this trade, to add to my position if we are going even lower.

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We have seen another trendline touch where we could have added to our position. I moved my stoploss now just below the lower trendline. Next resistance is that of the ATH 0.0032 if we do not break it, we might retace more, that's why I moved my stoploss.

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When I wrote the above comment this happened:

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It is time to reveal the bigger picture here:

If we reach the target area, then we are in 50-80% profit. We won't get there in one rush, but with some patience we can hopefully just let this trade go and place our sell orders in the target area.

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I removed my stoploss yesterday evening, otherwise I got stopped out. But as I said, I expect waltonchain to do a final push towards 0.005. I basically added the WTC I bought during this trade to my longterm bag of WTC. See my other post for the bigger picture: